Question 1

The person claiming a dependency exemption under a multiple support declaration must provide more than 25% of the dependent's support.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following credits is considered a refundable credit?

Accepted Answer

A)  child and dependent care credit 
B)  earned income credit 
C)  adoption expense credit 
D)  lifetime learning credit 
A)  child and dependent care credit 
B)  earned income credit 
C)  adoption expense credit 
D)  lifetime learning credit

Question 3

All of the following items are deductions for adjusted gross income except

Accepted Answer

A)  moving expenses. 
B)  unreimbursed employee business expenses. 
C)  qualifying contributions to individual retirement accounts. 
D)  one-half of self-employment taxes paid. 
A)  moving expenses. 
B)  unreimbursed employee business expenses. 
C)  qualifying contributions to individual retirement accounts. 
D)  one-half of self-employment taxes paid.

Question 4

Mary Ann pays the costs for her Aunt Hazel to live in a nursing home. Aunt Hazel receives Social Security benefits of $7,000 a year which are turned over to the nursing home. Mary Ann pays the remaining cost of $33,000. Hazel has no other income. Mary Ann visits Hazel twice a week and meets with doctors and nurses regarding Hazel's medical care. What tax issues should Mary Ann consider?

Accepted Answer

Can Mary Ann file as

Question 5

Taxable income for an individual is defined as

Accepted Answer

A)  AGI reduced by itemized deductions. 
B)  AGI reduced by personal and dependency exemptions. 
C)  total income reduced by the standard deduction. 
D)  AGI reduced by deductions from AGI and personal and dependency exemptions. 
A)  AGI reduced by itemized deductions. 
B)  AGI reduced by personal and dependency exemptions. 
C)  total income reduced by the standard deduction. 
D)  AGI reduced by deductions from AGI and personal and dependency exemptions.

Question 6

Amber supports four individuals: Erin, her stepdaughter, who lives with her; Amy, her cousin, who lives in another state; Britney, her friend, who lives legally in Amber's home all year long; and Charlie, her father, who lives in another state. Assume that the dependency requirements other than residence are all met. How many personal and dependency exemptions may Amber claim?

Accepted Answer

A)  2 
B)  3 
C)  4 
D)  5 
A)  2 
B)  3 
C)  4 
D)  5

Question 7

Discuss why Congress passed the innocent spouse provision and detail the requirements to be met in order to qualify as an innocent spouse and be relieved of liability for tax on unreported income.

Accepted Answer

The provision was passed because each sp

Question 8

A corporation has revenue of $350,000 and deductible business expenses of $240,000. What is the federal income tax, before credits?

Accepted Answer

A)  $16,500 
B)  $22,500 
C)  $26,150 
D)  $42,900 
A)  $16,500 
B)  $22,500 
C)  $26,150 
D)  $42,900

Question 9

Ryan and Edith file a joint return showing $130,000 of AGI. They have three dependent children ages 7, 9, and 13. What is the amount of their child credit?

Accepted Answer

A)  $0 
B)  $1,000 
C)  $2,000 
D)  $3,000 
A)  $0 
B)  $1,000 
C)  $2,000 
D)  $3,000

Question 10

The filing status in which the rates increase most rapidly is

Accepted Answer

A)  single. 
B)  head of household. 
C)  married filing separately. 
D)  married filing jointly. 
A)  single. 
B)  head of household. 
C)  married filing separately. 
D)  married filing jointly.

Question 11

Steven and Susie Tyler have three dependent children ages 13, 15, and 17. Their modified AGI is $108,000. What is the amount of the child credit to which they are entitled?

Accepted Answer

A)  $0 
B)  $1,000 
C)  $2,000 
D)  $3,000 
A)  $0 
B)  $1,000 
C)  $2,000 
D)  $3,000

Question 12

In 2013, Leo's wife died. Leo has two small children, ages 2 and 4, living at home whom he supports entirely. Leo does not remarry and is not claimed as a dependent on another's return during any of this period. In 2014, 2015, and 2016, Leo's most advantageous filing status is, respectively

Accepted Answer

A)  single for all three years. 
B)  head of household for all three years. 
C)  surviving spouse, surviving spouse, head of household. 
D)  surviving spouse, surviving spouse, single. 
A)  single for all three years. 
B)  head of household for all three years. 
C)  surviving spouse, surviving spouse, head of household. 
D)  surviving spouse, surviving spouse, single.

Question 13

Liz and Bert divorce and Liz receives custody of their child. Bert is ordered by the court to pay child support of $10,000 per year, and Liz files the appropriate IRS form to allow Bert to claim the dependency exemption for the child. If Liz maintains the home in which she and her child live, her filing status and exemptions claimed will be

Accepted Answer

A)  single and one exemption. 
B)  single and two exemptions. 
C)  head of household and one exemption. 
D)  head of household and two exemptions. 
A)  single and one exemption. 
B)  single and two exemptions. 
C)  head of household and one exemption. 
D)  head of household and two exemptions.

Question 14

Cheryl is claimed as a dependent on her parents' tax return. She had a part-time job during 2016 and earned $4,900 during the year, in addition to $600 of interest income. What is her standard deduction?

Accepted Answer

A)  $1,050 
B)  $4,900 
C)  $5,250 
D)  $6,300 
A)  $1,050 
B)  $4,900 
C)  $5,250 
D)  $6,300

Question 15

The child credit is for taxpayers with dependent children under the age of

Accepted Answer

A)  14. 
B)  17. 
C)  19. 
D)  24. 
A)  14. 
B)  17. 
C)  19. 
D)  24.

Question 16

Charlie is claimed as a dependent on his parents' tax return in 2016. He received $8,000 during the year from a part-time acting job, which was his only income. What is his standard deduction?

Accepted Answer

A)  $1,050 
B)  $6,300 
C)  $8,000 
D)  $8,350 
A)  $1,050 
B)  $6,300 
C)  $8,000 
D)  $8,350

Question 17

The following information is available for Bob and Brenda Horton, a married couple filing a joint return, for 2016. Both Bob and Brenda are age 32 and have no dependents.
 $\begin{array}{ll}
\text { Salaries } & \$ 190,000 \
\text { Interest income } & 12,000 \
\text { Deductible IRA contributions } & 11,000 \
\text { Itemized deductions } & 22,600
\end{array}$ Withholding$\quad$$\quad$33,000 a. What is the amount of their gross income?
b. What is the amount of their adjusted gross income?
c. What is the amount of their taxable income?
d. What is the amount of their tax liability (gross tax)?
e. What is the amount of their tax due or (refund due)?

Accepted Answer

None

Question 18

What options are available for reporting and paying tax on the unearned income of a child under age 24?

Accepted Answer

One option allows the child to report th

Question 19

Nonrefundable tax credits are allowed to reduce or totally eliminate a taxpayer's tax liability but any credits in excess of the tax liability are lost.

Accepted Answer

A) True 
 B)False

Question 20

Steve Greene, age 66, is divorced with no dependents. In 2016 Steve had income and expenses as follows:
 $\begin{array}{llcc}
  \text { Gross income from salary } &\$80,000\
  \text { Total itemized deductions } &5,500\
\end{array}$
 Compute Steve's taxable income for 2016. Show all calculations.

Accepted Answer

The additional stand

Exam 17: Determination of Tax

The person claiming a dependency exemption under a multiple support declaration must provide more than 25% of the dependent's support.

Which of the following credits is considered a refundable credit?

All of the following items are deductions for adjusted gross income except

Taxable income for an individual is defined as

Discuss why Congress passed the innocent spouse provision and detail the requirements to be met in order to qualify as an innocent spouse and be relieved of liability for tax on unreported income.

A corporation has revenue of $350,000 and deductible business expenses of $240,000. What is the federal income tax, before credits?

Ryan and Edith file a joint return showing $130,000 of AGI. They have three dependent children ages 7, 9, and 13. What is the amount of their child credit?

The filing status in which the rates increase most rapidly is

Steven and Susie Tyler have three dependent children ages 13, 15, and 17. Their modified AGI is $108,000. What is the amount of the child credit to which they are entitled?

In 2013, Leo's wife died. Leo has two small children, ages 2 and 4, living at home whom he supports entirely. Leo does not remarry and is not claimed as a dependent on another's return during any of this period. In 2014, 2015, and 2016, Leo's most advantageous filing status is, respectively

Cheryl is claimed as a dependent on her parents' tax return. She had a part-time job during 2016 and earned $4,900 during the year, in addition to $600 of interest income. What is her standard deduction?

The child credit is for taxpayers with dependent children under the age of

Charlie is claimed as a dependent on his parents' tax return in 2016. He received $8,000 during the year from a part-time acting job, which was his only income. What is his standard deduction?

What options are available for reporting and paying tax on the unearned income of a child under age 24?

Nonrefundable tax credits are allowed to reduce or totally eliminate a taxpayer's tax liability but any credits in excess of the tax liability are lost.

Steve Greene, age 66, is divorced with no dependents. In 2016 Steve had income and expenses as follows: Gross income from salary \8 0,000 Total itemized deductions 5,500 Compute Steve's taxable income for 2016. Show all calculations.

Tax Research

Corporate Formations and Capital Structure

The Corporate Income Tax

Corporate Nonliquidating Distributions

Other Corporate Tax Levies

Corporate Liquidating Distributions

Corporate Acquisitions and Reorganizations

Consolidated Tax Returns

Partnership Formation and Operation

Special Partnership Issues

S Corporations

The Gift Tax

The Estate Tax

Income Taxation of Trusts and Estates

Administrative Procedures

an Introduction to Taxation

Gross Income: Inclusions

Gross Income: Exclusions

Property Transactions: Capital Gains and Losses

Deductions and Losses

Itemized Deductions

Losses and Bad Debts

Employee Expenses and Deferred Compensation

Depreciation, Cost Recovery, Amortization, and Depletion

Accounting Periods and Methods

Property Transactions: Nontaxable Exchanges

Property Transactions: Section 1231 and Recapture

Special Tax Computation Methods, Tax Credits, and Payment of Tax

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